Fanatics launches sports betting app in Ohio and Tennessee

Fanatics a sports apparel company, is finally making a move in the sports betting space at a time when other companies, including MaximBet and PointsBet, have withdrawn or are in the process of leaving the North American market. This does not seem to put a damper on Fanatics' ambitions for the market in the United States, as the company has confirmed that it will be launching its first gambling app in Tennessee and Ohio on Monday, May 1.

Speaking in an interview for the Wall Street Journal, Fanatics CEO Michael Rubin said that the company is highly motivated to realize a vision of its own for sports betting. Rubin admits that the company is a late mover, but this won’t stop Fanatics, a brand that has a database of 95m customers worldwide. This connectivity with millions of sports fans is what offers Fanatics its keen edge, the executive believes.

The idea behind the Fanatics platform is to create a "digital platform" that brings together all sorts of sports-related content, from sports betting to sports-team gear, autographed memorabilia, trading cards, and more. Fanatics is also allocating a significant war chest to see its vision come to fruition, with the company confirming that it will spend at least $1bn to see its new division realized.

Access to the Fanatics app will be limited to only Fanatics customers at first, a risky gamble, but one that is motivated by a broader company strategy, it seems. However, the company is not going to stop at Tennessee and Ohio, as it will be launching in Massachusetts and Maryland in June, or thereabouts. Fanatics is also very ambitious about its overall prospects, with the company looking to launch in 12 states before the next football season in September.

As such ventures go, Fanatics does not expect to be immediately profitable off its sports betting division, but the chief executive has a plan for that as well and hopes that profitability can be reached in 2025 or 2026.

Image credit: Fanaticsinc.com